Ultimate Resort has become the second largest destination club after completing the purchase of the assets of Tanner and Haley for $100 million.

Tanner and Haley went into administration some time ago, after questionable business decisions caused the company to lose significant amounts of money. Ultimate Resort pulled off something of a coup in having the bankruptcy administrators agree to sell the real estate assets for less than had been offered by a competing club, Ciel.

Ultimate Resort now has more than 750 club members and properties in 25 resort destinations in the United States, the Caribbean, Mexico and Europe. The acquisition was funded to the tune of $100 million by CapitalSource and JDI Realty.

“We are extremely pleased that this important transaction has now closed, adding many new resort destinations, spectacular new club properties and hundreds of new members, greatly enhancing our strategic platform for continued club growth in the future,” said Ultimate Resort Founder, President and CEO Jim Tousignant. “This positive outcome benefits all parties involved, especially the 650 new members who are now part of the growing Ultimate Resort family. We are also pleased to welcome more than 100 former Tanner & Haley employees, many of whom have years of experience providing five-star concierge and member services.”

Ultimate Resort signed an asset purchase agreement with Tanner & Haley in November 2006, whereby Ultimate Resort agreed to acquire substantially all of the real estate assets of Tanner & Haley (T&H) after having been unanimously approved by the T&H Unsecured Creditors’ Committee. Subsequently Ultimate Resort won final sale approval from the US Bankruptcy Court to acquire Tanner & Haley’s assets, and on May 4, 2007 the acquisition closed with Ultimate Resort acquiring substantially all of the real estate assets of Tanner & Haley’s three former luxury destination clubs (Private Retreats, Distinctive Retreats, and Legendary Retreats). As part of the transaction more than 650 former members of Tanner & Haley have agreed to become members in Ultimate Resort and Ultimate Resort ELITE destination clubs.

Michael Szwajkowski, President of CapitalSource Structured Finance said: “As the industry leader in destination club real estate financing, CapitalSource is committed to helping finance market leaders like Ultimate Resort. We are strong believers in Ultimate Resort’s management team and their business model and we are proud to lead the financing of Ultimate Resort’s acquisition of Tanner & Haley’s luxury real estate portfolio, creating one of the top destination clubs in the industry.”

Jeff Aeder, Chairman of JDI Realty said: “In the last two years, Ultimate Resort has grown substantially and has quickly become a leader in the luxury resort, hospitality and destination club market. We are excited to be partnering with Ultimate Resort on this important acquisition, and we are pleased to have made a significant investment in the future growth of Ultimate Resort.”

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